During this month (until the period from July 10th to 13th), Brazilian ethanol prices are 36 percent inferior to the values of July last year - in nominal terms. The CEPEA/ESALQ Index (Sao Paulo state) for anhydrous averages 0.66352 real or 0.34976 dollar per liter (excluding taxes), 36.2 percent in Real lower than the Jul/06 average. For the hydrated, the decrease is of 35.7 percent in Real, averaging 0.58022 real or 0.3058 dollar per liter (excluding taxes).
The production has increased at a faster rhythm in relation to the flex fuel vehicles sales and exports. Another reason for the lower values is the domestic sugar market. In July 2006, the CEPEA/ESALQ Index for crystal sugar averaged 50.25 reals or 22.95 dollars per bag of 50 kilos, 52.2 percent in Real lower than the current values.
According to the Foreign Trade Secretariat (Secex), in June, ethanol exports increased 29 percent over the same period of the last year, totalizing 214 million liters. In the first semester of 2007 (January to June), the total volume exported of ethanol enlarged 71 percent also comparing with the same period of 2006.